Pete's already over at Claire's house, trying to get her to talk to him. Claire acts like she has a secret, and doesn't tell Pete anything beyond the "news" that Kevin's fine. Jesse and Fi are watching from a car in their cop suits and sunglasses, and when Pete heads back to his car, they intercept him. They don't even have to do anything but claim to be with IA before Pete starts getting all squirrely. They act mysterious and tell him not to leave town. As soon as they walk away, Pete calls Michael and tells him the deal has to happen today. Michael's only too happy to oblige.
At the loft, the team discusses Pete's choice of meeting place: Kevin's boat. Fi doesn't like it, but Michael says they don't have a choice. Sam and Fi will cover Michael and call the cops when they know Pete has the coke. "How about we kick his ass first and then we call the cops?" Sam suggests. "We'll see," Michael says indulgently. That's so romantic.
Later, Michael's at the dock while Sam and Fi watch from a distance, Sam again equipped with the sniper rifle. Michael gets on the boat, and when Sam and Fi spot Pete in the trees at some distance, he's got a remote detonator. Fi calls a warning to Michael, and he dives out of the fireball and straight into the commercial break.
Pete's car roars away while Sam fires a couple of ineffectual shots at it from his sniper rifle. Then Sam and Fi run down to the dock in time to find Michael's jacket floating in the water -- and then Michael hauling himself out of the water unharmed. Sam figures they blew it, but Michael says they're not done as long as Pete still has the drugs and thinks Kevin's still alive. He borrows Sam's phone to call Jesse (who's positioned near enough to have heard the boom but not near enough to do anything but stand around waiting to hear from the rest of the team) and tell him that they need to catch Pete before he gets back to Miami. Jesse's job: arrange a traffic jam on the causeway. Michael's new plan is to get Pete to plant the coke at Kevin's place, and it's going to be up to Sam to make sure the cops see it happen. With all of Sam's buddies on the force, how hard could that be?
Michael VOs about the ease of causing a traffic jam, which Jesse has done by faking a breakdown on the causeway. That makes it easy for Michael march right up on foot and to grab his target at a choke point. "Your target is likely to be distracted, unarmed, and sitting in your potential getaway vehicle," Michael VOs, Sure enough, Michael walks right up to Pete's open window and carjacks him, forcing him to turn around. He's doing a pretty good job of acting pissed off at Pete for trying to kill him, too.